Profit before tax for the half-year was £13.5 million (unaudited), compared with £10.7 million for the same period last year, a rise of 26 per cent.
Mortgage lending grew by £564 million over the six months to £5.1 billion, an increase of 12% on 2005 year-end balances. During the same period, net deposit growth was £216 million (9% growth) with total retail deposits increasing to £2.7 billion.
Graeme Hartop, managing director of Scottish Widows Bank plc, said: "This is the most profitable first half-year return in Scottish Widows Bank’s history, with continued significant increases in mortgage lending and deposit growth.
“Our cost-to-income ratio for the six-month period was 42%, compared with 48% for the same period last year. Credit quality also remains excellent, with arrears levels approximately one sixth of the industry average.
"The underlying strategy of providing consistently competitive products from a low cost base continues to drive success. Our strategic positioning and range of innovative niche products have served us well in the intermediary and affinity partnership markets.”
Hartop concluded: “I am delighted with the progress made and the increased financial contribution to the Group.”
